COSTA MESA, Calif. (AP) — Data storage equipment maker Emulex Corp. said Thursday that a subcontracted manufacturing facility in Thailand has suspended operations because of flooding.
It said the ground floor of the building in Ayudhaya experienced some damage, but equipment, raw materials and finished goods were moved to higher floors or other locations and were not affected.
The company said the availability of some board-level products may be constrained for the current quarter and that costs could rise to obtain supplies quickly. It said it would explain more on Oct. 27 when it announces quarterly earnings.
Earlier, the biggest hard drive makers — Seagate Technology PLC and Western Digital Corp. — warned of delays because of flooding. Western Digital has suspended its operations in Thailand. Floodwaters have affected two factories, which shut down last week. Seagate says that its factories in Thailand are operational but warned that it is having difficulty getting some components.
The flooding in Thailand since August has killed 317 people, mostly from drowning. Nearly 9 million people have been displaced or otherwise affected. Estimates of the economic cost were $3 billion and rising.
Emulex shares fell 31 cents, or 4.4 percent, to close at $6.68 on Wednesday. The announcement came after the market closed.
